Possessing unique strengths, this is how Chinese manufacturers "make a fortune" at the 2024 Paris Olympics

The 2024 Paris Olympics – the world's biggest sporting event – ​​is expected to be a giant summer stage for manufacturers from China – the country known as the "factory of the world".

With unique strengths, Chinese manufacturers are expected to “win big” at the 2024 Paris Olympics. (Source: SCMP)

Tonight, at 01:30 on July 27 (Vietnam time), the whole world will turn their attention to the capital of Paris, France, and admire the most historic and spectacular event - the opening of the 2024 Paris Olympic Games. What is particularly noteworthy is that most of the dishes at the 2024 Paris Olympics will be French, but mass-produced goods from China will be everywhere, from advanced sports equipment to small souvenirs.

This year's biggest sporting event on the planet is expected to be a giant summer stage for manufacturers from China - the country known as the "factory of the world".

Yan Zaixing, CEO of Sonic Composite Technology, the only manufacturer selected to supply windsurfing equipment for the 2024 Paris Olympics, said that his company is “unrivaled” in terms of the quality of its new materials and manufacturing processes. This is also the reason why Sonic Composite Technology is far superior to other manufacturers in the race to become an equipment supplier for the Olympics. “We are the only company in the world that has a superior industrial chain for production,” Yan Zaixing confidently declared.

Concerned about rising labor costs and geopolitical tensions, especially trade competition with the US, many manufacturers have decided to move operations from China to India or some Southeast Asian countries.

However, the world's second largest economy still has its own strengths and significant appeal, possessing a comprehensive supply chain network and superior organization, established over decades.

Paul Tai, regional director at global manufacturer and retail solutions provider Mainetti Group, explains that with events as large as the 2024 Paris Olympic Games, there won't be much time to fulfill all orders.

“Not many places have the ability to do that, especially in a short time and with quality standards,” added Mr. Paul Tai, noting the advantage of industrial clusters in China as units here have the ability to find different types of materials needed for production.

Mainetti Group is currently producing souvenirs for Chinese gymnasts attending the Olympics and supporting Chinese sports equipment company Anta by providing accessories such as clothes hangers for the national team.

Previously, Mr. Paul Tai's company has been a key partner of the International Olympic Committee since 2020, providing packaging products for the Tokyo 2020 Olympics and the Beijing 2022 Olympics.

“In the future, China's manufacturing industries will move up the value chain by using more artificial intelligence (AI) or automation in the production process,” Tai noted.

Whether it is India or Southeast Asian countries, these manufacturing hubs are behind China in terms of building globally recognized systems, according to Fan Di, Associate Professor and Associate Dean of the Department of Fashion and Textiles at the Hong Kong Polytechnic University.

According to French weekly news magazine L'Express , 90% of the mascots for the 2024 Paris Olympics are made in China. Also according to Chinese state news agency Xinhua , many Olympic souvenirs, including caps, T-shirts, toys, pens, bracelets and notebooks sold in Paris are "made in China", with some manufacturers starting to receive orders in the second half of last year. Other Olympic-related products - from athletes' sportswear to beanbag sofas used in the Olympic Village - are all produced in Zhejiang province, in eastern China.

“Despite higher labor costs, logistics, work efficiency and transportation in China are much better than those of regional competitors,” said Qiu Dongxiao, dean of the School of Economics at Lingnan University in Hong Kong. He added that China’s manufacturing industry is huge and it is difficult to find such scale in other countries.

China exported 1,116 sets of uniforms and other specialized equipment for International Olympic Committee (IOC) staff on June 21, one of the largest shipments Beijing has sent to Paris, according to the Xiamen Customs Department in Fujian Province.

The export value of sports-related products from manufacturers in Zhejiang province exceeded 10 billion yuan (about 1.38 billion USD) in the first four months of 2024 alone – up nearly 25% year-on-year and accounting for a quarter of the country's total exports.

Figures from e-commerce giant Alibaba also showed that sports equipment exports to France surged in March, with popular items including tennis clothes, custom sportswear, training helmets and golf bags.

“In the case of China, although it has become a world leader in many advanced manufacturing sectors, not all low-end manufacturing has moved offshore. China still has unique competitive advantages,” said Stephen Olson, a senior fellow at the Pacific Forum and a visiting lecturer and nonresident fellow at the Yeutter Institute in Nebraska.

Source: https://baoquocte.vn/so-huu-the-manh-doc-dao-day-la-cach-cac-nha-san-xuat-trung-quoc-hot-bac-tai-olympic-paris-2024-279263.html